The battle to exploit the popularity of the tablet computer in the wake of the huge success of Apple's iPad is hotting up, with Richard Branson announcing that Virgin will unveil its custom-built iPad magazine in New York next week.

Virgin is billing the magazine as a paperless "revolutionary multimedia" publication designed specifically for the iPad. In advance literature, it was referred to as Project though when it was first announced in July it was called Maverick.

That iPad venture, which is costing Murdoch $30 million, with a dedicated staff of about 100 journalists, is expected to be unveiled next month with a launch intended for early next year.

The runaway success of the iPad, with sales expected to reach almost 13 million this year and 20 million in 2011, has been seized upon by media owners as the possible solution to the riddle of how to make money on the back of digital information. Readers have proved to be far more amenable to paying for news through iPad apps than they are to accepting website paywalls such as the one constructed around the Times and Sunday Times in the UK earlier this year.

Publications created specifically for the iPad also have the financial advantage of having no printing costs and other overheads associated with traditional newspapers.

By announcing further details of his iPad magazine in New York, Branson is making an explicit move of his tanks onto Murdoch's lawn. Murdoch will have the advantage of Apple's involvement in the Daily on the technical side.

Virgin's project will be more entertainment and less current affairs focused than the Daily. It is being spearheaded by Branson's 29-year-old daughter Holly and editorially led by Anthony Noguera, former editor of Arena, Zoo and FHM.

Its content will lean heavily on entertainment, design, business, travel and international culture.